The International Finance Corporation (IFC) has invested $605 million in three significant projects in Egypt, aimed at advancing economic development and fostering sustainability. These projects focus on climate finance, sustainable tourism, and expanding access to financing for small and medium-sized enterprises (SMEs). 

The first project involves a $300 million investment in sustainability bonds issued by the Arab African International Bank (AAIB), marking Egypt’s first such issuance and the largest of its kind by a private bank in Africa. This initiative is co-financed by the European Bank for Reconstruction and Development (EBRD) and British International Investment (BII), each contributing $100 million. 75% percent of the bond’s proceeds will be allocated to green initiatives such as improving industrial energy efficiency, developing small-scale renewable energy projects, and constructing green buildings. The remaining 25 percent will support social projects, including financing for micro, small, and medium-sized enterprises (MSMEs).

The second project involves a $155 million sustainability-linked financing agreement with Orascom Development Egypt to promote green tourism. This funding will be used to enhance energy and water efficiency while reducing greenhouse gas emissions in hotels located in El Gouna on the Red Sea coast. The project is expected to reduce energy consumption from non-renewable sources by 50 percent and cut water usage by at least 20 percent. Additionally, part of the funding will restructure Orascom’s existing debt, strengthening the company’s financial stability.

The third project is a $150 million investment in the Commercial International Bank (CIB) to bolster its financial position amidst current economic challenges. This funding will enable CIB to expand its financing to micro and SME businesses, with a focus on enterprises owned by women. The initiative aims to create job opportunities, drive economic growth, and reduce the gender financing gap in Egypt.

IFC Vice President for Africa, Sérgio Pimenta, highlighted the strategic importance of these investments, describing them as a testament to the strong partnership between IFC and Egypt. He noted that the projects will enhance financial inclusion for micro and small businesses and accelerate the country’s transition to a green economy, unlocking its economic potential. 

Egypt’s Minister of Planning and Economic Development, Rania Al-Mashat, emphasized that the investments align with the national vision of fostering private-sector participation and achieving inclusive and sustainable growth. She also underscored the importance of climate action and the private sector’s central role in building a resilient future.

Governor of the Central Bank of Egypt, Hassan Abdalla, stated that a robust financial sector is essential for sustainable private-sector-led development. He welcomed IFC’s investments as a key contribution to creating a more competitive and sustainable financial system in Egypt.

These projects align with the World Bank Group’s strategic partnership framework with Egypt, which aims to promote a green, inclusive, and sustainable development environment. They also support IFC’s broader strategy to create jobs, expand financial access, and empower SMEs in Egypt. 

Since beginning its operations in Egypt in 1975, IFC has invested and mobilized approximately $9 billion in various sectors, while maintaining a $24 million advisory portfolio. Its focus areas include fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, and gender equity.

The agreements were signed during Pimenta’s visit to Egypt, during which he met with Prime Minister Mostafa Madbouly, Minister Rania Al-Mashat, Central Bank Governor Hassan Abdalla, and private-sector partners. During the visit, he emphasized the corporation’s commitment to supporting the private sector and driving inclusive economic growth.

These investments reaffirm IFC’s long-standing commitment to fostering sustainable economic growth in Egypt.